China establishes working mechanism to ensure smooth issuance of 1 trillion yuan in additional govt bonds
Published: Nov 17, 2023 01:47 PM
Chinese yuan Photo:VCG

Chinese yuan Photo:VCG

The National Development and Reform Commission, the Ministry of Finance (MOF) and related government agencies have established a working mechanism to ensure the smooth and steady issuance of the additional government bonds of 1 trillion yuan ($139.3 billion), the MOF said on Friday.

The ministry detailed the latest work on the additional government bond issuance, the China Central Television (CCTV) reported on the same day. The MOF said that they will closely review projects and allocate an appropriate budget, and strengthen regulation of capital raised through government bonds to enhance capital usage efficiency, according to the report.

On October 24, the Chinese central government announced a planned issuance of one trillion yuan in additional government bonds in the fourth quarter to support the rebuilding of disaster-hit areas and boost the country's disaster relief capabilities.

The bonds will be transferred to local governments. A total of 500 billion yuan will be used this year, and another 500 billion yuan will be carried over to next year.

In order to bolster high-quality economic and social development, a total of 3.52 trillion yuan worth of special government bonds were issued in the first 10 months of this year, which were mainly used for key sectors including industrial parks, transport infrastructures and affordable housing projects, domestic media outlet the Securities Times reported on Friday, citing the MOF.

The ministry said that more efforts will be made to play the driving role of special government bonds and boost sustained recovery of the economy, according to the report.

In line with the deployment of the State Council, the ministry will allocate some of new local government bond quota of 2024 in advance to appropriately guarantee their financing needs. Meanwhile, authorities will strengthen management of government bonds, especially special government bonds, to ensure capitals for key projects, drive effective private investment and enhance capital usage efficiency.